4 tips for investing in futures

When you want to start investing in futures, there are a number of important things you need to take into account. For example, it is important for an entrepreneur to constantly keep an eye on the American S&P 500 future. This is where the most trading takes place in the world, which is why the S&P 500 future is often leading for what happens in the world. In addition, it is important to look back in time, to know where the prices are, to regularly study the underlying value and not to get stuck in a negative position.

Look back

For today’s current price, it is important to know what has happened in the world of futures in recent months and weeks . The last few weeks indicate whether the prices are following the market, or whether they are actually falling more. The last few days indicate where the support is and where possible resistance is located. However, yesterday is the most important day. This is the most current and will therefore give the best representation of the price.

Know where the prices are

It is important that you know the prices inside and out. For example, it is very important to know what the highest and lowest prices of the past trading day are and where the fluctuations are. Pay close attention to where the strengths or weaknesses lie and try to find out as much as possible about the moments when fluctuations occur. Does the price start weak, or do the prices quickly rise sharply? Try to get as clear a picture of this as possible, so that you can take the strongest possible position.

Study the underlying value

Once you understand the contractual obligations of the futures, and settlements, it is important to choose a few futures that are traded frequently. Study these price movements continuously. It is important that you understand the underlying value. So do not invest in futures with an underlying value that you know nothing about. For example, if you want to trade futures in coffee, you must read up on the coffee (bean) market .